I am so confused. I am under the standard deduction but I saw another post that said you could go into the steps below to offset the losses. This is insane that I have to be pay taxes on money I never made and actually lost in the end. Please provide insight on below from another article I found on here:
"you will enter the gambling winnings so that you can also enter the losses.
You will enter the 1099-MISC so that it matches what the the IRS has on file.
You will enter a NEGATIVE 1099-MISC to negate the double reporting.
Go to
Wage & Income
Less Common Income
Prizes, Awards, and Gambling Winnings
It first asks if you have a W-2G, select No.
Next, enter the amount won from the 1099-MISC
Continue and enter the amount of losses on the following screen.
Click Done
Enter the 1099-MISC as it is reported.
Wages & Income
1099-MISC and Other Common Income
Income from 1099-MISC START or UPDATE
Next, enter a negative adjustment
Wages & Income
Less Common Income
Miscellaneous Income, 1099-A, 1099-C START
Scroll down to "Other reportable income" START
Type "Gambling reported twice" or something similar that will let the IRS know what you are doing
Enter the same total amount of the 1099-MISC to zero it our (enter as a negative number)
Click DONE
The total winnings will be on Schedule 1 line b2 and carried to line b4
The 1099-MISC will be on line z2b
The adjustment is on line z12
The amount from Schedule 1 flows to Form 1040 line 8"
